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Lobbying, multisector trade, and sustainability of free-trade agreements

Authors Qiu, Larry Dongxiao HKUST affiliated (currently or previously)
Issue Date 2004
Source Canadian journal of economics, November 2004, p. 1061-1083 , v. 37, (4), November, 2004, p. 1061-1083
Summary This paper is concerned with the sustainability of free-trade agreements (FTA). FTA sustainability is influenced by governments' valuations of political contributions, discount factors, the lobbying position of the specific-interest groups in the intra-industry trade sectors, and the sectoral coverage of the FTA. I find that (i) under certain conditions, the FTA under protectionist lobbying could be more sustainable than the FTA under no political pressure; (ii) the lobby-supported FTA is more sustainable than the lobby-opposed FTA and the FTA under no political pressure; and (iii) multisector trade enhances FTA sustainability.
ISSN 0008-4085
Rights This is an electronic version of an article published in Canadian journal of economics, vol. 37, iss. 4, November 2004, p. 1061-1083 © 2004 The Canadian Economics Association by the University of Toronto Press
Language English
Format Article
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